Net revenue increased by 13% to $544.4 million from $479.7 million in
the third quarter of fiscal 2015.

Total comparable sales, which includes comparable store sales and
direct to consumer, increased by 7%.

Comparable store sales increased by 4%.

Direct to consumer net revenue increased by 16% to $104.0 million.

Gross profit increased by 24% to $278.4 million, and as a percentage
of net revenue gross profit was 51.1% compared to 46.9% in the third
quarter of fiscal 2015.

Income from operations increased by 36% to $93.0 million from $68.2
million in the third quarter of fiscal 2015, and as a percentage of
net revenue was 17.1% compared to 14.2% of net revenue in the third
quarter of fiscal 2015.

Income tax expense increased to $25.3 million from $12.1 million in
the third quarter of fiscal 2015, and the effective tax rate was 27.0%
compared to 18.6%. Excluding certain tax and related interest
adjustments, the effective tax rate was 31.3% compared to 28.8% in the
third quarter of fiscal 2015.

Diluted earnings per share for the third quarter of fiscal 2016 were
$0.50 compared to $0.38 in the third quarter of fiscal 2015. Excluding
certain tax and related interest adjustments, diluted earnings per
share were $0.47 for the third quarter of fiscal 2016 compared to
$0.35 for the third quarter of fiscal 2015.

The Company ended the third quarter of fiscal 2016 with $480.4 million
in cash and cash equivalents compared to $403.4 million at the end of
the third quarter of fiscal 2015. Inventories at the end of the third
quarter of fiscal 2016 increased by 2% to $364.5 million compared to
$357.8 million at the end of the third quarter of fiscal 2015. The
Company ended the quarter with 389 stores.

The Company also announced that its board of directors has approved a
stock repurchase program for up to $100 million of its common shares in
the open market at prevailing market prices. The timing and actual
number of common shares to be repurchased will depend upon market
conditions and other factors, in accordance with Securities and Exchange
Commission requirements. The stock repurchase program is intended to
create shareholder value by making opportunistic repurchases during
periods of favorable market conditions. Shares may be repurchased from
time to time on the open market, through block trades or otherwise.
Purchases may be started or stopped at any time without prior notice
depending on market conditions and other factors.

Laurent Potdevin, lululemon's CEO, stated: "Our third quarter results
demonstrated strong execution across all areas of our business as we
delivered continued topline momentum, outperformed in gross margin and
inflected meaningfully in EPS. This success is a result of our team's
ongoing effort and commitment to delivering on our long term strategies."

Mr. Potdevin continued: "As we entered the fourth quarter, we
experienced mixed sales results that have since improved. I am inspired
by the team's response and passion towards making this another
successful holiday season, and I am confident that we will continue to
deliver an unparalleled guest experience across all our channels and
regions around the globe."

Updated Outlook

For the fourth quarter of fiscal 2016, we expect net revenue to be in
the range of $765 million to $785 million based on total comparable
sales in the mid-single digits on a constant dollar basis. Diluted
earnings per share are expected to be in the range of $0.96 to $1.01 for
the quarter. This guidance assumes 137.3 million diluted
weighted-average shares outstanding and a 31.2% tax rate.

For the full fiscal 2016, we now expect net revenue to be in the range
of $2.320 billion to $2.340 billion based on total comparable sales in
the mid-single digits on a constant dollar basis. Diluted earnings per
share are expected to be in the range of $2.18 to $2.23 for the full
year, or $2.11 to $2.16 normalized for the tax and related interest
adjustments made during the first three quarters of fiscal 2016. This
guidance assumes 137.3 million diluted weighted-average shares
outstanding and a 28.2% tax rate, or 30.9% excluding the above tax and
related interest adjustments.

Conference Call Information

A conference call to discuss third quarter results is scheduled for
today, December 7, 2016, at 4:30 p.m. Eastern time. Those interested in
participating in the call are invited to dial 1-800-319-4610 or
1-604-638-5340, if calling internationally, approximately 10 minutes
prior to the start of the call. A live webcast of the conference call
will be available online at: http://investor.lululemon.com/events.cfm.
A replay will be made available online approximately two hours following
the live call for a period of 30 days.

About lululemon athletica inc.

lululemon athletica inc. (NASDAQ:LULU) is a healthy lifestyle inspired
athletic apparel company for yoga, running, training, and most other
sweaty pursuits, with products that create transformational experiences
for people to live happy, healthy, fun lives. Setting the bar in
technical fabrics and functional designs, lululemon works with yogis and
athletes in local communities for continuous research and product
feedback. For more information, visit www.lululemon.com.

A constant dollar basis assumes the average foreign exchange rates for
the current period remained constant with the average foreign exchange
rates for the same period of the prior year. We provide constant dollar
changes in net revenue, total comparable sales, comparable store sales,
and changes in direct to consumer net revenue because we use these
measures to understand the underlying growth rate of net revenue
excluding the impact of changes in foreign exchange rates. We believe
that disclosing these measures on a constant dollar basis is useful to
investors because it enables them to better understand the level of
growth of our business.

We disclose the effective tax rate and diluted earnings per share
excluding certain tax and related interest adjustments because of their
comparability to our historical information, which we believe is useful
to investors.

The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or with greater
prominence to, the financial information prepared and presented in
accordance with GAAP. For more information on these non-GAAP financial
measures, please see the section captioned "Reconciliation of Non-GAAP
Financial Measures" included in the accompanying financial tables, which
includes more detail on the GAAP financial measure that is most directly
comparable to each non-GAAP financial measure, and the related
reconciliations between these financial measures.

Forward-Looking Statements:

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that involve risks, uncertainties
and assumptions, such as statements regarding our future financial
condition or results of operations and our prospects and strategies for
future growth. In many cases, you can identify forward-looking
statements by terms such as "may," "will," "should," "expects," "plans,"
"anticipates," "outlook," "believes," "intends," "estimates,"
"predicts," "potential" or the negative of these terms or other
comparable terminology. These forward-looking statements are based on
management's current expectations but they involve a number of risks and
uncertainties. Actual results and the timing of events could differ
materially from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without limitation:
our ability to maintain the value and reputation of our brand, including
any negative publicity regarding our products or the production methods
of our suppliers or manufacturers; the acceptability of our products to
our guests, including receiving products that comply with our technical
specifications and quality standards; our highly competitive market and
increasing competition; our reliance on and limited control over
third-party suppliers to provide fabrics for and to produce our
products; an economic downturn or economic uncertainty in our key
markets; increasing product costs and decreasing selling prices; our
ability to anticipate consumer preferences and successfully develop and
introduce new, innovative and updated products; our ability to
accurately forecast customer demand for our products; our ability to
safeguard against security breaches with respect to our information
technology systems; any material disruption of our information systems;
our ability to manage our growth and the increased complexity of our
business effectively; the fluctuating costs of raw materials; our
ability to expand internationally in light of our limited operating
experience and limited brand recognition in new international markets;
our ability to deliver our products to the market and to meet customer
expectations if we have problems with our distribution system; imitation
by our competitors; our ability to protect our intellectual property
rights; changes in tax laws or unanticipated tax liabilities, capital or
financing needs in the United States, or our intentions with respect to
the reinvestment of foreign earnings; our ability to cancel store leases
if an existing or new store is not profitable; increasing labor costs
and other factors associated with the production of our products in
South and South East Asia; our ability to successfully open new store
locations in a timely manner; our ability to comply with trade and other
regulations; the continued service of our senior management;
seasonality; fluctuations in foreign currency exchange rates; the
operations of many of our suppliers are subject to international and
other risks; our ability to source our merchandise profitably or at all;
our exposure to various types of litigation; actions of activist
stockholders; and other risks and uncertainties set out in filings made
from time to time with the United States Securities and Exchange
Commission and available at www.sec.gov,
including, without limitation, our most recent reports on Form 10-K and
Form 10-Q. You are urged to consider these factors carefully in
evaluating the forward-looking statements contained herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these cautionary
statements. The forward-looking statements made herein speak only as of
the date of this press release and we undertake no obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances, except as may be required by law.

The below changes in net revenue, total comparable sales, comparable
store sales, and direct to consumer net revenue show the net change for
the third quarter of fiscal 2016 compared to the third quarter of fiscal
2015.

Change in NetRevenue

Change inTotalComparableSales1,2

Change inComparableStore Sales2

Change inDirect toConsumer NetRevenue

Increase

13%

7%

4%

16%

Adjustments due to foreign exchange rate changes

—

—

—

—

Increase in constant dollars

13%

7%

4%

16%

__________

1

Total comparable sales includes comparable store sales and direct to
consumer sales.

2

Comparable store sales reflects net revenue from company-operated
stores that have been open for at least 12 months, or open for at
least 12 months after being significantly expanded.

These adjustments relate to the Company's transfer pricing
arrangements and the associated repatriation of foreign earnings.
Please refer to Note 7 to the unaudited interim consolidated
financial statements included in Item 1 of Part I of the Company's
Report on Form 10-Q to be filed with the SEC on or about December 7,
2016 for an explanation as to the nature of these items.

These adjustments relate to the Company's transfer pricing
arrangements and the associated repatriation of foreign earnings.
Please refer to Note 7 to the unaudited interim consolidated
financial statements included in Item 1 of Part I of the Company's
Report on Form 10-Q to be filed with the SEC on or about December 7,
2016 for an explanation as to the nature of these items.

Store count and square footage summary includes company-operated
stores which are branded lululemon or ivivva. Excludes retail
locations operated by a third party under a license and supply
arrangement.

2

Gross square feet added/lost during the quarter includes net square
foot additions for company-operated stores which have been renovated
or relocated in the quarter.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding lululemon athletica inc (PR)'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.